“After reining in their expenses through much of last year, businesses are showing a greater appetite for investment, which bodes well for the general performance of the economy this year.

“While recent high profile corporate announcements on jobs and operations in Australia have highlighted the challenges that remain for a number of industries, we are still seeing year-on-year improvements in the general business outlook,” he says.

The survey found that 48 per cent of businesses are optimistic about sales revenue this quarter, with 11 per cent expecting reduced trade.

The biggest challenges to growth were expected to be a slow demand for products and competitors selling online.

Economic advisor Stephen Koukoulas says the figures point to a trend pace of economic growth.

“All up, the business sector is moving into the middle of 2014 in sound shape with strong sales, improving capital expenditure plans and a steady view on profits and employment,” he says.